AR Effects and Ads Performance Metrics
Performance, Budgeting and Strategy for AR Ad Campaigns
How do you stand out in an era where the average watch time is between 2 to 3 seconds for video campaigns? The data is pointing towards AR Effects in new studies conducted by Meta.
Here are the key points that you should know as a marketer or strategist about AR effects on performance, budgeting and strategy.
Performance: AR Effects on Advertising
AR Ads lead to the following outcomes:
3X in Brand Lift for AR Ads vs BAU (Business As Usual) Ads
59% lower cost for campaigns with AR effects vs BAU campaigns
82% likelihood of lower CPA (Cost Per Action) when AR effects are combined with a BAU campaign vs a BAU campaign alone
AR Effects on Gen Z:
15 second interaction time on average for AR effects
Average watch time for videos is between 2 to 3 seconds
6.7 pt average lift in incremental Ad Recall for campaigns that included AR Effects
AR Effects combined with Ads increases performance through the entire funnel from awareness, consideration to conversion.
Budgeting: AR Effects
At a Meta Connect panel that included branding leadership from BMW - a consensus was formed on budgeting. A ratio of two to one for distribution budget relative to production or higher. Distribution budget in this scenario represents some combination of paid spending (advertising, influencers). Production represents all investments needed to create the AR experience.
Strategy: AR Effects
How should you think you think about creative for AR Effects in conjunction with ads? The effect should do one of the three line items below:
Entertain - Amuse the user
Participate - Help the user connect with others direct or share more about themselves in an engaging way
Decide - Help evaluate whether an offering is the right one
Background information on my expertise. I’m a co-founder of Foundry Six - an AR studio focused on games on high interaction experiences. We’ve worked with brands from Toyota, Samsung, Burger King to M&M’s on interactive AR experiences for over four years. We can build AR effects with Meta, Snap or TikTok. We also can build stand alone AR effects with 8th Wall or Snap Camera Kit.
My team works with both creative agencies as a white labeled service as well as directly with brands. My teams plays well with others. We expect the same. If you are an ad agency or a brand interested in collaborating. Happy to have a conversation!
